During the third quarter, Boston’s commercial real estate market saw a rise in vacancy rates for the fourth consecutive period, according to Colliers’ Q3 2023 Reports on Office, Multifamily and Industrial. This trend is attributed to investors acquiring assets at lower prices and an increase in available direct space. As a result, tenants are now finding more favorable conditions in the Boston office market.
On the other hand, Boston’s multifamily market remains strong with healthy vacancy rates and above-average rent growth compared to historical averages. These reports offer valuable insights into overall availability of properties as well as trends in activity and investment patterns over time.
Despite these challenges, vacancies within the industrial sector remain relatively stable at three percentage points below long-term averages. While there was generally positive net absorption over the past year with some exceptions for warehouse space, landlords were unable to raise rents as aggressively as previous years. However, industrial asking rents still experienced approximately 2.5% growth over this same time period.
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